Indonesia: Today’s Top Headlines — April 2, 2026

Top Stories

7.4-Magnitude Earthquake Hits Maluku Sea; Tsunami Warning Issued

• What’s happening: A 7.4-magnitude quake struck the North Maluku Sea near Ternate on Thursday (April 1), according to the USGS. Tsunami warnings were immediately issued for Indonesia, the Philippines, and Malaysia.
• Why it matters: Ternate is a densely populated, historic island. With a tsunami warning in effect, millions along the coast of North Maluku and neighboring countries are on high alert and must follow emergency evacuation protocols.

Indonesia Demands UN Probe Into Deaths of Three UNIFIL Peacekeepers

• What’s happening: The Indonesian Foreign Ministry officially urged the UN on Wednesday (April 1) to investigate the deaths of three Indonesian UNIFIL personnel killed by an Israeli strike in Southern Lebanon. Families back home are in deep mourning.
• Why it matters: Indonesia is one of the world's largest contributors to UN peacekeeping missions. This incident has ratcheted up diplomatic tensions between Jakarta and Tel Aviv and highlights the wider fallout of the US-Israel vs. Iran conflict in the region.

Fuel Sales Restricted Starting April 1 to Counter War Impact

• What’s happening: To mitigate energy price hikes and potential supply disruptions from the US-Israel-Iran conflict, the Indonesian government began implementing fuel sales restrictions on April 1, 2026. Pertamina has confirmed it will not raise fuel prices.
• Why it matters: This policy directly impacts consumers and businesses across the country. These restrictions mark the government’s first concrete response to global energy volatility centered around the Strait of Hormuz.

Indonesia’s Forest Loss Climbs 66% Under Prabowo Policies

• What’s happening: A report by the environmental think tank Auriga Nusantara, released in late March 2026, shows that Indonesian forest cover loss surged 66% throughout 2025—the highest level in eight years.
• Why it matters: This spike in deforestation could damage Indonesia’s reputation with international investors and trading partners, who are increasingly focused on sustainability, while also threatening the climate targets the government promised.

1 sources

moderndiplomacy.eu

moderndiplomacy.eu

Japan and Indonesia Strengthen Energy Security Cooperation

• What’s happening: Amid growing fears over oil and gas supplies due to Middle East tensions, Japan and Indonesia have agreed to deepen economic and energy security ties, according to a Washington Post report on March 31, 2026.
• Why it matters: Both nations rely on energy imports passing through the Strait of Hormuz. This partnership could help diversify energy sources and boost Indonesia’s leverage in global energy negotiations.

Economy & Markets

IHSG Plummets 18.49% in Q1 2026 — Worst Performance in Years

• The IHSG closed at 7,048.222 on March 31, 2026, a sharp drop from 8,646.938 at the end of 2025. This 18.49% quarterly decline is driven by three main factors: Middle East geopolitical tensions, fiscal risks in the state budget, and foreign investor sell-offs. In March alone, the index fell 13.82%.

Rupiah Nears Rp17,000/US$ Mark, Markets Under Pressure

• The Rupiah edged closer to the critical Rp17,000 per US dollar level on March 31. The government is responding with plans to hold fuel prices steady, implement WFH options, and strengthen the B50 program to help stabilize the market.

Indonesia’s Fiscal Pressure Mounts Amid Global Oil Shocks

• An analysis from The Jakarta Post (April 1) highlights that Indonesia is facing a severe fiscal resilience test as soaring global oil prices collide with rigid domestic spending commitments. The government’s fiscal room is shrinking fast.

Tech & Digital

Indonesia Bans Kids Under 16 from High-Risk Digital Platforms

• Indonesia is rolling out Ministerial Regulation No. 9/2026, prohibiting children under 16 from accessing high-risk platforms like TikTok, Instagram, and Roblox to combat online risks.
• This move makes Indonesia one of the most proactive Southeast Asian nations in regulating digital platforms for child protection, which could impact the business strategies of tech giants operating in a market of over 270 million people.

Global News

Trump Claims US Operations in Iran Will End "Very Soon"

• What’s happening: On Tuesday (March 31), President Trump stated that US military operations in Iran will end "very soon," predicting they will wrap up in two to three weeks. He claimed Iran has agreed to most of the 15 US demands, though Israel continues to strike infrastructure in Tehran.
• Why it matters: Any signal of de-escalation could stabilize global oil prices and ease the pressure on the Rupiah and Indonesia’s state budget.

Kuwaiti Tanker Attacked Off Dubai Coast, Oil Spill Risk

• What’s happening: A Kuwaiti oil tanker was attacked off the coast of Dubai on Tuesday (March 31). The ship caught fire, raising fears of an oil spill in the area, according to the New York Times.
• Why it matters: This underscores the vulnerability of global energy supply routes in the Persian Gulf, directly impacting Indonesia’s import costs.

Trump Tells European Allies to "Find Their Own Oil"

• What’s happening: Trump has ramped up his rhetoric, mocking European allies who oppose the Iran war and telling them to "go find their own oil."
• Why it matters: The rift among Western nations complicates multilateral diplomatic efforts, including at the ASEAN and G20 forums, where Indonesia plays an active role.

Keep an Eye On

1. Ternate Earthquake Aftermath The 7.4-magnitude quake is still a developing situation. Watch for updates in the next 24–72 hours on whether the tsunami warning is lifted, the extent of damage and casualties in Ternate, and the response from BNPB and national search and rescue teams.

2. Rupiah and IHSG Stability With the IHSG down 18.49% for Q1 and the Rupiah hovering near Rp17,000/US$, this week's trading will test whether government interventions (no fuel price hikes, WFH options, B50 expansion) are enough to restore investor confidence.

3. US-Iran Negotiations Trump’s "two to three weeks" timeline for the end of operations is key, though Israel's continued strikes and Iran's lack of confirmation keep things uncertain. This will dictate global oil prices and, by extension, Indonesia's fiscal health and fuel subsidies in the coming weeks.